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Public benefits of Air NZ/Qantas deal less

Wednesday 11th June 2003

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The Commerce Commission says there is less public benefit in the proposed Air New Zealand Qantas merger than first anticipated.

After auditing of its models for the deal it has calculated the net benefits now fall within the range of -$195.4 million to -$466.5 million in the third year of the acquisition.
The change comes about because it has made some technical corrections to its model.

"Importantly, the Commission's methodology and assumptions underlying the modelling results, and the model itself, have not been changed," the commission says in a statement.
It anticipates receiving submissions on the model and its assumptions during the Commission's conference planned to be held in August.

Summary of Annual Net Public Benefits ($M) (Year 3)

Draft Determination Revised Estimates
Detriments -202 to -432 -245 to -500
Benefits 30.2 to 46.3 33.5 to 49.6
Net Benefits -155.7 to -401.8 -195.4 to -466.5

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


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